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Jiangsu has experienced impressive industrial development since 1949, often achieving higher growth rates than China’s national average. Nonetheless, rates of growth have fluctuated with distinct policy periods. In ‘‘Industry’s Response to Market Liberalization in China: Evidence from Jiangsu Province’’ I analyzed the structure of industrial production and productivity in Jiangsu Province to explore changes in specialization and efficiency. This research covered the years 1952–88 and focused on comparing the period before 1978, when Maoist regional self-reliance was being promoted, with the post-1978 reform when many of the selfreliant policies were reversed. To analyze Jiangsu’s production structure, I used location quotients for 29 products. The results showed that Jiangsu’s production patterns became less specialized from 1957 to 1978, consistent with self-reliance. In fact, none of the products in the sample showed an increase in specialization during this period. After 1978, however, 14 of the products analyzed moved toward specialization, showing a clear change in the production structure. To analyze productivity, I applied a simple growth-accounting framework, using estimates of the output elasticities with respect to capital and labor based on Jiangsu data. With these assumptions, productivity declined an average of 2.1% per year from 1953 to 1978, while it increased an average of 4.4% per year from 1978 to 1988. These results did not change substantially with alternative parameter assumptions. Both the specialization and productivity results suggest that reforms had a substantial, positive impact on Jiangsu’s economy. The comment by MengHao Zhao and Paul M. Sommers addresses the last section of my article, which compared state and collective industrial productivity in the reform period. Series for both gross and net out-

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